Accept or Reject: Factors Influencing Nonprofit Responses to Cannabis Industry Philanthropy

Abstract

As the cannabis industry engages in philanthropy, nonprofits face complex decisions about whether to accept such donations. Although prior research has focused on the motivations behind corporate giving in stigmatized industries, much less is known about how potential recipients evaluate these contributions. This study explores the organizational and contextual characteristics that shape nonprofit openness to cannabis philanthropy, drawing on institutional, stakeholder, and legitimacy theories. Using survey data from over 300 Colorado nonprofits, we examine how factors such as size, age, mission, population served, federal funding, and local political context influence both attitudes toward and actual acceptance of cannabis-related funding. Results show that smaller and younger organizations appear to exhibit greater openness to cannabis-related donation acceptance. Additionally, mission alignment and the beneficiary population—particularly organizations serving youth—are the strongest predictors of rejection, whereas federal funding is also associated with reluctance. Contrary to expectations, political context does not significantly influence decisions. The findings highlight the normative and resource-dependence pressures through which nonprofits assess and legitimize emerging sources of controversial funding.